According to the Fort Collins Board of Realtors we are seeing a glimmer of hope for a more balanced and normal housing market in Northern Colorado.
Six Key Points to Take Note Of
We are seeing a more predictable seasonal slow down in the cycle of demand for housing as we move into another school year.
• Large numbers of buyers are being pushed to neighboring communities around Fort Collins as would happen in a normal market as price of homes, inventory, value/type of housing become more differentiated.
• With the rapid increase in the median home price of $225,000 in 2010 to near $400,000 in 2017 in Fort Collins, we are finally seeing a slowing of the annual percentage increase to what is predicted to be around 5% and no higher than 10% in coming years.
• Affordability of a median-priced single family home for the average wage earner is slipping away. Multi-family housing is being used to close the affordability gap all over Northern Colorado.
• Inventory will remain unbalanced. What is considered to be a "normal inventory situation" would have a six month supply of homes on hand at any given time - currently we are at 2.3 months for single family homes and 1.1 months for multi-family homes.
• Nearly 100% of homes sold are sold for the listing price and sellers and buyers have a clearer picture of the value of a home as it goes on the market when comparing it to other recently sold properties.
Keys to the Changing Housing Market
Finally, the Fort Collins Board of Realtors point out that housing below $300,000 is going to be very limited and housing valued at above that amount will continue to become more common. Soon the median price of $400,000 will become the line of "delineation" for a growing market.
For me an important take away from this information is that we are now moving into the time of year when, in the past, there has been more pressure on sellers to compromise and work with a buyer because there are fewer of them looking for a home in what could again become the "off season." If you are thinking about buying a residence, we could be heading into the best time of the year to find that long dreamed of new home. Waiting will only mean an increase in price and more competition as we move once again toward the spring. Also, future interest rates are unpredictable and can really impact the price of a home you can afford. With a healthy economy, they may begin to rise well above current levels.
We are definitely still in the "Buy a Home NOW" mode here in Northern Colorado! Please contact us with your questions. We know the housing market well in Northern Colorado and would enjoy helping you get started as you look for your new home.